Firstly, it is important to make sure that you are clear about your budgeting goals. How much are you aiming to save each month, and where will the remainder be spent? After all, even if you’ve got a great credit card deal from somewhere like lovemoney.com, you will still need to prioritize your outstanding payments above the money which you might otherwise allocate to various leisure activities. Rather than being vague and simply suggesting that you ‘budget’ in order to ’save’, you are far more likely to achieve your aims if you set specific goals and limitations on your overall spending.

Another good way to stick to your budget is to try and use cash wherever possible. Paying by card can sometimes be much too easy, and you are more liable to forget that the money which comes out of your account can be eating into your budget. By handing over physical cash, you will be automatically more aware of exactly how much money is changing hands each time you make a purchase.

Rather than just wandering around various stores when you are picking up your family’s groceries, make a list of what you actually need while you’re at home, and then stick to it. It is also a good idea to hang on to your receipts, so that you can keep a record of exactly how much of your budget has been spent, and where.

Personally, I thought that was one of my finest posts (if I do say so myself).  But alas, I only received 18 comments…not nearly as many as the 65 comments that have been exchanged on the Quicken Loans post.

Anyways, here are my thoughts for 2010, in no particular order:

1.)  Save as much of your income as you UNCOMFORTABLY can!  I know this seem like an impossible and crazy goal, but I took some time last week to plug some family budget numbers for my team of 5, and surpisingly, it appears that if we made some marginal sacrifices, we could save ALOT more money every month than we currently do.  Now I haven’t discussed it with my wife yet, but I believe she will be on board, and that it makes sense to hunker down and become “uncomfortable savers”.  No doubt, we will thank our “younger” selves in the future!

2.)  Place a bet on US stocks.  I believe that over the next 20 years, investing in strong US based companies is going to provide significantly better financial returns than CD’s or Money Market accounts.  Make it a point this year to talk to your financial advisor or stock broker about some potential investment opportunities.

3.)  Study IRS tax laws!  I feel like a significant path to wealth is to be wise and strategic with your money.  One step in the right direction in 2010 will be to actually do TAX PLANNING.  Hire a good CPA and really invest your time into understanding your options within the US tax systems, then take the steps necessary to take advantage of every tax deduction or credit that you are legally entitled to…the IRS is not going to do it for you!  If you don’t educate yourself, and take advantage of good things like Electric Vehicle Tax Credits, or Energy Efficiency tax savings, no one is to blame but yourself!

4.) Work Harder!  This one is a carryover from 2009, but is still a timeless truth!  Times are STILL tough and many great people are losing their jobs.  My suggestion to you is to work that much harder at whatever it is you do to bring home the bacon.  Become the “we cannot lose, period” employee at your job.  This is often thankless extra effort, but it is worth it in the long run.  I believe great effort is always richly rewarded over the long haul!

5.)  Strive to become debt free!  Easy advice, enough said!  Too many people WAY smarter than me have preached on the debt topic!

6.)  Be Generous and Be Thankful!  Life is a gift, and is way too short to not take full advantage of it!

7.)   “Have fun, love people, and drink great coffee!”

HERE IS TO A HAPPY AND HEALTHY 2010! -TAM

Many Thanks to Jennifer Lohan for the above guest post.

• Allow yourself time to change gears- If you have been on spending fast track for years, it will be difficult at first to adjust to a slower pace. Going back to the days before credit cards became popular, people were forced to save money before they made a purchase. Over the years, as credit became more readily available, this practice became almost obsolete. As you adjust to this change in your spending “mentality”, remember in some cases slow and steady does win the race.
• Start slow- If you are dealing with a financial hardship or trying to pay off debt, it may be difficult to find a lot of money to put toward your savings goals. It is important to remember that every little bit helps and even if you are only able to put a few dollars away each week, that amount will eventually add up.
• Build momentum as you go- As you eliminate your debt, you will be able to increase the amount of money you put in your savings. Do not feel tempted to absorb that money in your day-to-day spending. If you lived without it while paying your debt, you can live without it to build your savings.
• Different financial goals require different saving strategies- Once you feel comfortable saving money in general you will be able to fine tune your savings goals. This will include having both short and long term goals which will require different saving strategies to achieve.

In many cases the hardest thing about saving money is getting started. For many people living paycheck-to-paycheck trying to squeeze even a few extra dollars into the budget may seem impossible. In most situations it is possible to find the money to save, and once you get started you will see how quickly small contributions add up. Whenever possible automate your savings so you are not tempted to spend that money in other places. Reaching your financial goals is not something that happens overnight, in fact for most people it is a lifetime endeavor, one that is well worth the effort in the end.

Trisha Wagner is a freelance writer for DepositAccounts.com, where you can compare rates of checking accountsfrom dozens of banks in one place. Trisha writes regularly on the topics of personal finance and savings accounts.

This sale was GREAT in that it put a couple hundred thousand into the bank pretty fast.  What was NOT so great was that I was GIVING UP the approx. 50K in income that those restaurants provided each year. 

I learned a hard business lesson that many business owners simply don’t consider when they sell their businesses.  It is easy to think, “Great, I’ve got a large chunk of money!”  It is not as easy to think, “Wow, I need to change my lifestyle as I just gave up a recurring revenue stream!”

That being said, in 2008 my family needed to change our spending habits SIGNIFICANTLY or we risked blowing our entire nest egg.  Here is a snippet of what we did to cut 30K of fat from our budget without too much lifestyle change.  And I can tell you it felt AWESOME to get the spending under control!  As a family we didn’t feel like we were giving up much at all…2008 was probably our best year yet!

BIG CHANGES:

1.)  Gave up expensive travel and vacations for frequent camping trips to local state parks.  $6000 yearly savings!

2.  Gave up eating out all the time and trying to buy “Organic Everything!”  $3500 yearly savings!

3.  Stopped shopping when we were “bored” and realized our closets ALREADY were overflowing!  $4000 yearly savings!

4.  Got rid of our most expensive auto payment.  $5000 yearly savings!

5.  Gave up going to the movies and out with friends all the time and traded it for Blockbuster Online and popcorn with our girls.  We were spending almost $3000 per year on BABYSITTERS!  Crazy, I know!  $4000 yearly savings.

Smaller Changes:

1. Refinanced our mortgage to a 5.50% 30 year fixed rate.  $1800 saving per year.

2. Appealed our property tax assessment.  $500 savings per year.

3.  Learned how to set our programmable thermostat, and dropped the temperature about 3 degrees.  $800 savings per year!

4.  Dropped expanded cable and phone service $1200 savings per year.

5.  Stopped mindlessly driving everywhere and stuck to a fuel budget.  $2000 savings per year.

6.  Misc. small cuts not worth mentioning $1200 savings per year.

I hope this helps some of you and encourages you to “tighten up the belt!”  I know it is a lot more sexy to buy a new 60 inch plasma than to increase your permanent life insurance coverage…but what has the better long-term payoff for your family?  That’s what we all need to decide!